10 Million Micro Businesses Will Be Scaled Up

Lovata Andrean

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Rancakmedia.com – The Department of Cooperatives and Small and Medium Enterprises (UKM) targets to transform more than 10 million micro-enterprises into official fields by 2024.

Meanwhile, as one of the ministry's seven goals for 2024, it includes the birth of 3.500 technologies and information-based startups, the construction of 500 new cooperatives and an increase in the level of entrepreneurship to 4%.

Minister of Cooperatives and SMEs Teten Masduki explained that his faction would try to increase the contribution of MSMEs to gross domestic product (PDB) to 65%, increase the contribution of cooperatives to GDP to 5,5% and increase the contribution of MSME export contributors to 17.%.

"Efforts to gain direction will not proceed without regulation, cooperation and collaboration between the center and the regions," said Teten in a journalist broadcast received, Thursday (8/4).

Micro Business Will Be Improved

Apart from that, Teten has decided on four ideas for changing the form of the Ministry of Cooperatives and Small and Medium Enterprises, namely changing the form of an informal sector company to an official company, changing the form to a supply chain, changing the form to digital, and modernizing cooperatives.

"Hopefully this productive collaboration will provide a positive contribution to the economy," said Teten. The national entrepreneurship figure is currently only 3,47% and is below several ASEAN countries such as Singapore (8,76%), Thailand (4,26%) and Malaysia (4,74%).

The number of MSME residents is around 65.465.497 units, but their share in national GDP is 60,51%. Of that number, 98,7% are micro businesses and the share of MSMEs in bank debt only reaches 19,97%. Apart from that, the contribution of MSMEs to exports is only 14,37%, lower than other countries, namely Singapore 41%, Malaysia 18%, Thailand 29%, Japan 25% and China with 60%.

The number of active cooperatives is currently 127.124 units, but they only contribute 5,1% to GDP. The cooperative, which was intended to become a support for the economy, was ultimately unsuccessful because it had not yet become the economic institution of choice for residents.

"Remember the role and role of KUMKM in the national economy, therefore it is necessary to increase work integration, harmony and collaboration between ministries or agencies with those responsible for cooperatives and MSMEs throughout Indonesia to drive development and further advance changes in cooperatives and MSMEs. ," said Teten.

At that time, the Secretary of the Ministry of Cooperatives and Small and Medium Enterprises, Arif Rahman Hakim, said that his faction would be responsible for the implementation and planning of the 2021 and 2022 programs after the functioning of Law Number 11 of 2020 concerning Job Creation and Government Provisions Number 7 of 2021 were strengthened in regarding convenience, protection and strengthening of cooperatives and MSMEs.

For this reason, the Ministry of Cooperatives and Small and Medium Enterprises is carrying out pilot programs or activities in 2021 and will continue focused activities in 2022 in the name of Government Regulation Number 7 of 2021.

These activities include cooperative costs, guidance and accompaniment to small businesses in terms of granting company permits and legal advice.

"Apart from that, the use of public infrastructure is 30% for business improvement and promotion of MSMEs, implementing regulations for the provision of public service goods is 40% for MSMEs, and the implementation of a single MSME database," he said. say.

FAQ

How are MSMEs currently developing?

Currently, the development of MSMEs is recorded in more than 65 million MSMEs throughout Indonesia. In 2016, there were 61,7 million MSMEs in Indonesia, with the number continuing to increase until 2021, with the number of MSMEs reaching 64,2 million.

How is the Current Development of MSMEs

How the Government Encourages the Micro and Small Business Sector

The Government's efforts to advance MSMEs include details of the UMKM PEN program, namely: Interest/Margin Remuneration, Guaranteed Expenditures (IJP), Placement of Government Funds in Banks, Guarantee for MSME Credit Ceiling Losses, Final Income Display for government-owned MSMEs, Investment financing.

Does Micro Business Have an Impact on the Economy?

MSMEs are the main support for the Indonesian economy. Based on data from the Ministry of Cooperatives and SMEs, the number of MSMEs currently reaches 64,2 million with a contribution to GDP of 61,07% or worth 8.573,89 trillion rupiah.

Conclusion

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Lovata Andrean

Hi, I'm Lovata, I'm not Ai but I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends. Thanks